MACD & AMA Trading System

MACD & AMA Trading System has been designed with a combination of optimized AMA and Rads MACD for identifying the market trend correctly and enter the market within the direction of the predetermined trend for greater trading results. Since it uses only two simple trading indicators, the system looks less complex and can be mastered by anyone including the newbie traders.

MACD & AMA Trading System can be applied to trade all kinds of forex currency pairs around the market. Furthermore, this system suits great with all sorts of timeframe charts within the forex mt4 trading platform.

MACD & AMA Trading System Overview

Once you’re done with the installation of this system at the MT4 terminal, your trading chart will appear like the following image

MACD & AMA Trading System Overview

MACD & AMA Trading System: Explanation

MACD & AMA Trading System Explanation

  • AMA: This indicator plays the main role in detecting market trends. Price moves above its level and the indicator itself turns into the blue is a confirmation of the bullish trend. Contrarily, it turns red and the price keeps closing below its level are considered as the confirmation of the bearish trend of the market.
  • Rads MACD: It works as a filter of the signals generated by AMA. For buy entry, MACD value must be positive and uprising. MACD with red bars carrying negative value represents the validity of going for short entries.

Continue Reading: Radar Signal System

MACD & AMA: Trading Rules

Buy Entry

MACD & AMA Trading Buy Entry

  • AMA turns blue and price closes above its level
  • MACD value turns positive
  • Buy triggers when both of the above conditions are met at the same time
  • Set stop loss below the current swing low of the market
  • Exit long/take profit whenever AMA turns red and price closes below its level at the same time 

Sell Entry

MACD & AMA Trading Sell Entry

  • AMA turns red and price closes below its level
  • MACD value turns negative
  • Sell triggers when both of the above conditions are met at the same time
  • Set stop loss above the current swing high of the market
  • Exit short/take profit whenever AMA turns blue and price closes above its level at the same time
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I have been actively trading stocks and currencies since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund which has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.

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